NANDAN DENIM 2022-23 Annual Report Analysis

Wed, 28 Feb

NANDAN DENIM has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NANDAN DENIM Income Statement Analysis

• Operating income during the year fell 6.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY23 as against 7.4% in FY22.
• Depreciation charges decreased by 16.4% and finance costs increased by 26.9% YoY, respectively.
• Other income declined by 37.6% YoY.
• Net profit for the year declined by 98.8% YoY.
• Net profit margins during the year declined from 3.1% in FY22 to 0.0% in FY23.

NANDAN DENIM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,756	20,268	-6.8%
Other income	Rs m	186	116	-37.6%
Total Revenues	Rs m	21,942	20,384	-7.1%
Gross profit	Rs m	1,601	844	-47.3%
Depreciation	Rs m	445	372	-16.4%
Interest	Rs m	421	534	26.9%
Profit before tax	Rs m	921	54	-94.1%
Tax	Rs m	245	46	-81.1%
Profit after tax	Rs m	677	8	-98.8%
Gross profit margin	%	7.4	4.2
Effective tax rate	%	26.5	85.2
Net profit margin	%	3.1	0.0

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NANDAN DENIM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -16.2%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 35.6%.
• Current assets fell 19% and stood at Rs 7 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 15 billion during FY22, thereby witnessing a fall of 12%.

NANDAN DENIM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,389	5,404	0.3
Current Liabilities	Rs m	6,489	5,438	-16.2
Long-term Debt	Rs m	2,529	1,628	-35.6
Total Liabilities	Rs m	14,587	12,861	-11.8
Current assets	Rs m	8,895	7,196	-19.1
Fixed Assets	Rs m	5,692	5,665	-0.5
Total Assets	Rs m	14,587	12,861	-11.8

NANDAN DENIM Cash Flow Statement Analysis

• NANDAN DENIM's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 39.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -211 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -255 million from the Rs 117 million net cash flows seen during FY22.

NANDAN DENIM Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,014	1,410	39.0%
Cash Flow from Investing Activities	Rs m	-554	-211	-
Cash Flow from Financing Activities	Rs m	-342	-1,454	-
Net Cash Flow	Rs m	117	-255	-

Current Valuations for NANDAN DENIM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.6, stands at 279.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	150.9	140.6
TTM Earnings per share	Rs	4.7	0.1
Diluted earnings per share	Rs	4.7	0.1
Price to Cash Flow	x	8.0	16.1
TTM P/E ratio	x	13.3	279.2
Price / Book Value ratio	x	2.8	1.1
Market Cap	Rs m	15,128	6,120
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NANDAN DENIM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.4x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.1x during FY23, from 3.2x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 0.1% during FY23, from 12.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 8.4% during FY23, from 17.0% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.2% during FY23, from 7.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.3
Debtors’ Days	Days	748	636
Interest coverage	x	3.2	1.1
Debt to equity ratio	x	0.5	0.3
Return on assets	%	7.5	4.2
Return on equity	%	12.6	0.1
Return on capital employed	%	17.0	8.4

To see how NANDAN DENIM has performed over the last 5 years, please visit here.

NANDAN DENIM Share Price Performance

Over the last one year, NANDAN DENIM share price has moved down from Rs 62.5 to Rs 15.6, registering a loss of Rs 46.9 or around 75.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for NANDAN DENIM and quarterly results for NANDAN DENIM)